The differential equation is
\[
\dfrac{d^2 y}{dx^2} + 4y = 0.
\]
Its characteristic equation is
\[
m^2 + 4 = 0 \Rightarrow m = \pm 2i.
\]
So the general solution is
\[
y(x) = C_1 \cos 2x + C_2 \sin 2x.
\]
Apply the initial conditions:
\[
y(0) = 0 \Rightarrow C_1 = 0.
\]
Now,
\[
y'(x) = -2C_1 \sin 2x + 2C_2 \cos 2x = 2C_2 \cos 2x.
\]
Given
\[
y'(0) = 1 \Rightarrow 2C_2 = 1 \Rightarrow C_2 = \frac{1}{2}.
\]
Thus the solution is
\[
y(x) = \frac{1}{2} \sin 2x.
\]
The conditions $y(0)=0$ and $y'(0)=1$ are both specified at the same point, so this is an initial value problem.
Final Answer: (C)